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Essay Available:
Pages:
2 pages/≈550 words
Sources:
Check Instructions
Level:
Other
Subject:
Accounting, Finance, SPSS
Type:
Case Study
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 10.53
Topic:

Venture Capital Accounting, Finance, SPSS Case Study (Case Study Sample)

Instructions:

(1) the primary question(s) asked in the case, (2) the factors relevant to evaluating the case and reaching a conclusion/recommendation, and (3) your recommendation to the case problem/issue(s). Your recommendation should take a position or suggest a path of action. You should be able to defend your recommendation based upon the information provided in the case.

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Content:

Name
Instructor
Course
Date
Venture Capital
Introduction
The purpose of this paper is to evaluate the case of Metapath Software Corporation, also known as Metapath. There is a consideration of factors relevant to the matter and the issues involved before giving recommendations for the right actions. Metapath was presented with two financing choices to make in September 1997, namely: 1) A fund pool offer led by Robertson and Stephens Omega Fund (RSC) in collaboration with Technology Crossover Ventures (TCV), and 2) a proposal for acquisition by CellTech Communications.
Background of the Case
Metapath made significant advancements in its business activities since its inception in January 1995. In a period of slightly over two years, leading up to September 1997, the corporation had generated revenue amounting to $6.4 million and had four large customers (Hardymon and Wasik 2). However, it needed more capital to realize its ambition of a successful IPO in another two years. In the foregoing, Metapath received two offers for funding where RSC and TVC consortium was willing to buy $11.75 million worth of Metapth’s stock at a lucrative $76 million pre-money valuation; albeit based on a questionable participating convertible stock (PCPT). On the other hand, CellTech, an equally growing company, offered to acquire it and, in turn, offer its shareholders a common stock valued at $115 million (Hardymon and Wasik 2).
Statement of the Problems and Issues
Each of the two funding offers presented problems and issues

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